an economy becomes dynamic when you have enough entrepreneurs who actually start new businesses and take risks with their own money to create wealth for themselves and others. [ 1]!nd you need role models" high profile ones like #ichard $ranson who inspired me back in the early %&'s to start easy(et and to carry on with brand e)tension. [44]$ut that*s not enough: you need to celebrate them and make them role models for younger people. !t the end of the day+ an economy will only change structurally if you have loads of entrepreneurs. [,,]-e need to learn to celebrate success and tolerate failure. [.']-e need to take a lesson from !merica in that respect+ in the sense that !merican culture has been a lot more tolerant of business failure+ provided it*s non/fraudulent+ than we are in 0urope. [12]3 think that*s why the !merican economy is growing that much faster+ and is doing so much better. The idea that an immigrant can arrive in !merica and within a few decades become the ne)t $ill 4ates is what drives all these people. [55]6ou take risks in the process" you might fail and in !merica that*s considered part of the learning process. [& ]3 think the entrepreneur is capable of taking risks that a normal corporation investing its own money cannot take. [1' ]3t*s the ability to take almost an uncalculated risk. 7ometimes you can put a lot of spreadsheets together and analy8e /and paralyse / data" but at the end of the day it*s the gut feeling that tells you whether it*s worth risking money doing it. [121]The process of adjusting your course in order to reach profitability within a reasonable timeframe is+ again+ uni9uely the skill of an entrepreneur in the sense that it*s the entrepreneur who stays up at night to make sure that the planes are full+ or the cars are out of the car park rented to customers+ or the internet cafes are full+ or the cinemas are full+ or whatever else you*re trying to do. [14 ]3t*s the entrepreneur who will actually cut the costs if the revenues are not there to match the cost base. [1, ]0ntrepreneurs have the ability to take a longer/term view. :y investment cycle is usually measured in five to ten years. [1. ]3 invested in my first venture+ 7telmar 7hipping+ 12 years ago and it*s now listed on the ;ew 6ork 7tock 0)change and 3 may e)it. [11 ]7o my cycles are a lot longer than they are at a plc that has to report on a 9uarterly basis and have an ever/increasing earnings per share every 9uarter.
[154]3 think that as an entrepreneur you have to understand the risk you*re taking and make sure that you have a fallback position if it goes wrong. 3n other words+ there is a very high probability that you*re wrong about what you think is going to work. [1&&]3*m happy we*re taking risks+ provided you understand what your fallback position is+ be ready to accept it as a fallback position and make sure that it doesn*t ruin you. 7o have a way out+ have an e)it strategy that has a contingency plan on it+ and be willing to change direction. [222]3t*s not always the initial strategy that works.